We've gotten a few queries regarding property loans so we thought to share a series of educational information for those looking to take up a mortgage. We hope you will find these useful!

Along with the “property cooling measures” announced on 29 June 2013, the Monetary Authority of Singapore (MAS) introduced the use of the income-weighted average age (IWAA) for the calculation of loan tenure. IWAA only affects joint applicants of a property and it serves to provide a better gauge of their combined ability to repay the loan.

IWAA is calculated by taking the average age of the borrowers, weighted by their respective gross incomes. Here’s how the formula works.

In the case when IWAA is 36 years, assuming it’s for the first private property, 80% financing, maximum loan tenure will be 29 years (65 – IWAA = 65-36 =29).

In the case when IWAA is 44 years, assuming it’s for the first private property, 80% financing, maximum loan tenure will be 21 years (65 – IWAA = 65-44 =21).

The above are just general examples. For a detailed assessment, please contact our friendly OCBC Direct Acquisition Officer at 65794444 during office hours.

^Darren
From OCBC Bank

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We will do our best to respond to your posts as quickly as we can. However, outside of office hours and for urgent matters, please call 1800 363 3333.

Currently if we need to refinance mortgage loan we need to recalculate and determine the TDSR thing right ?

Whats the other term called to redo the loan package within the bank ? Is this the current only way to "refinance" so as to bypass the TDSR ?

Hi Savagemp5,

You are right! If you are to refinance your loan from one bank to another, the refinance loan would be subject to TDSR.

When you change the interest rate package with your current bank, it is known as a re-pricing. Unfortunately, as re-pricing is considered to be refinancing under the current regulations, it would also be subjected to TDSR.

^Darren
from OCBC Bank

__________________
We will do our best to respond to your posts as quickly as we can. However, outside of office hours and for urgent matters, please call 1800 363 3333.

You are right! If you are to refinance your loan from one bank to another, the refinance loan would be subject to TDSR.

When you change the interest rate package with your current bank, it is known as a re-pricing. Unfortunately, as re-pricing is considered to be refinancing under the current regulations, it would also be subjected to TDSR.

Is it really possible to upgrade/purchase a 2nd without touching your savings? SMS 8498 2913 to explore your options.

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